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Directional imbalance in transport prices and economic geography

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  • Takahashi, Takaaki

Abstract

This paper examines how and why transport prices become imbalanced with respect to the direction of shipments and how this affects economic geography. It is shown that the equilibrium transport price of the shipment in a particular direction is a nondecreasing function of the relative size of the embarkation region. Furthermore, we show that the directional imbalance in transport prices increases the likelihood of the symmetric pattern being stable and decreases the likelihood of the core-periphery patterns being sustainable. In short, the imbalance acts as a dispersion force.

Suggested Citation

  • Takahashi, Takaaki, 2011. "Directional imbalance in transport prices and economic geography," Journal of Urban Economics, Elsevier, vol. 69(1), pages 92-102, January.
  • Handle: RePEc:eee:juecon:v:69:y:2011:i:1:p:92-102
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. ISHIKAWA, Jota & TARUI, Norio, 2017. "Backfiring with Backhaul Problems: Trade and Industrial Policies with Endogenous Transport Costs," Discussion paper series HIAS-E-57, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    2. TAKATSUKA Hajime & Dao-Zhi ZENG & Laixun ZHAO, 2013. "Resource-based Regions, the Dutch Disease and City Development," Discussion papers 13001, Research Institute of Economy, Trade and Industry (RIETI).
    3. repec:eee:inecon:v:111:y:2018:i:c:p:81-98 is not listed on IDEAS
    4. Gokan, Toshitaka, 2013. "The location of manufacturing firms and imperfect information in transport market," IDE Discussion Papers 398, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Tsubota, Kenmei, 2015. "Agglomeration and directional imbalance of freight rates : the role of density economies in the transport sector," IDE Discussion Papers 488, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Kiyoyasu Tanaka & Kenmei Tsubota, 2017. "Directional imbalance in freight rates: evidence from Japanese inter-prefectural data," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 217-232.
    7. ISHIKAWA, Jota & TARUI, Nori, 2015. "Backfiring with backhaul problems: Trade and Industrial Policies with Endogenous Transport Costs," Discussion paper series HIAS-E-12, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    8. Xu, Hangtian & Itoh, Hidekazu, 2016. "Density economies and transport geography: Evidence from the container shipping industry," MPRA Paper 75580, University Library of Munich, Germany.

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